City hopes to chart new course beyond tourism economy

Palm Springs officials are undertaking a comprehensive Economic Development Strategic Plan that aims to diversify the city’s economy while tackling challenges of housing affordability and workforce shortages.

The initiative, which is roughly one quarter of the way toward completion, seeks to expand the city’s economy beyond tourism into technology and sustainability sectors while preserving its cornerstone hospitality industry.

“This is how the city generates its revenues and helps the city grow,” Wayne Olson, the city’s chief economic development officer, told attendees at a recent meeting of the Organized Neighborhoods of Palm Springs (ONE-PS). “Any choices that we make as a result of economic development impact all of us as citizens.”

CVL Economics consultant Adam Fowler, who presented the strategic planning process during the meeting, pointed to the city’s established strengths alongside its challenges. 

“You’ve got a very strong brand identity and recognition, and a robust airport infrastructure,” Fowler said. “On the weaknesses side, high and rising housing costs are putting real obstacles for not only service workers in the region, but attracting some of those younger people that might want to live in the region.”

The plan will also explore leveraging the influx of remote workers who moved to the area during the pandemic as a potential solution.

“You had an influx of young people who moved here and were able to work remotely. What does that look like in terms of building on that opportunity?” Fowler said.

He noted the plan also comes as Palm Springs faces mounting competition from neighboring communities. 

“There’s a lot of growing competition from cities down valley,” he said. “They’re poaching a lot of activity and their fiscal coffers are becoming more healthy because of it.”

City officials identified several critical challenges in their preliminary analysis, including the impact of extreme heat days on tourism and infrastructure, as well as seasonal workforce fluctuations.

The planning process will incorporate extensive community engagement through stakeholder interviews, upcoming resident surveys, and industry focus groups. “Please fill out that survey, share it with your friends,” Fowler urged meeting attendees.

The final plan, including suggestions for specific action, is expected to be presented to the Palm Springs City Council in July.

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